Media conglomerate Corus Entertainment (TSE:CJR.B) (OTC:CJREF) is trending slightly higher today after releasing its Q3 earnings results, which beat earnings-per-share (EPS) estimates but missed revenue forecasts. Adjusted EPS came in at C$0.09 (estimates were C$0.05), falling by 40%, and revenue for the quarter fell by 8% to C$397.34 million (estimates were C$406.15 million).
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The company’s consolidated segment profit margin was 24%. Nevertheless, on a non-adjusted basis, Corus lost C$2.48 per share or C$495.1 million. The net loss includes non-cash impairment charges of C$590.0 million tied to goodwill, broadcast licenses, trademark, and brand assets.
Next, free cash flow (FCF) was positive at C$26 million for the quarter and C$75.2 million for the Fiscal year-to-date period. Still, it fell by 5% year-over-year for the quarter and by 61% for the past nine months.
Also, the company’s net-debt-to-segment-profit ratio rose from 3.02 times in August 2022 to 3.85 times as of May 31, 2023, primarily due to a decrease in segment profit over the last four quarters. As of May 31, Corus had cash and cash equivalents amounting to C$56.2 million and debt totaling around C$1.25 billion.
Is CJR.B Stock a Buy, According to Analysts?
According to analysts, CJR.B stock comes in as a Moderate Buy based on one Buy, five Holds, and one Sell assigned in the past three months. The average CJR.B stock price target of C$2.60 implies 106.2% upside potential.
